India's Civil Aviation Ministry has announced the lifting of the maximum airfare cap on domestic flights, effective from March 23. This policy change allows airlines to set ticket prices based on seat demand and market conditions, following a period of regulated fares introduced last year in response to flight disruptions and staff shortages.
The move aims to restore normal operations across the sector and eliminate restrictions that limited airline pricing. The government has emphasized that airlines must maintain transparency and responsible pricing practices, with ongoing monitoring of fare trends to prevent unreasonable increases.
Union Civil Aviation Minister Ram Mohan Naidu stated that while global factors such as rising oil prices and geopolitical tensions might influence operating costs, measures are in place to ensure passengers are not unduly burdened. The government continues to engage with airlines to manage fuel costs and operational challenges effectively.
Furthermore, new regulations require airlines to reserve at least 60% of seats on each flight without additional charges, a substantial increase from the previous 20%. Passengers traveling on the same PNR will also be seated together or in adjacent seats, improving comfort and convenience.
This policy transition is expected to bring greater flexibility for airlines and more competitive fares for travelers, with continued oversight to protect passenger rights during the evolving market conditions.
